B U I L D I N G S A L E S J O U R N A L MASSEY KNAKAL SELLS THE 14-BUILDING BASSUK PORTFOLIO FOR $118,000,000

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1 Volume XVIIII Number II 2nd Quarter 2007 B U I L D I N G S A L E S J O U R N A L COMMERCIAL RESIDENTIAL THE 14-BUILDING BASSUK PORTFOLIO FOR $118,000, Hicks Street Massey Knakal Realty Services has sold the Bassuk Portfolio - 14 apartment buildings in Brooklyn and Queens - in an all-cash transaction valued at $118,000,000. The five buildings in Brooklyn are located in the Brooklyn Heights, Bay Ridge and Midwood sections of the borough. The Brooklyn properties consist of 240 residential units and approximately 271,000 gross square feet. The nine buildings in Queens are located in the Sunnyside, Jackson Heights, Richmond Hill and Woodhaven sections of the borough. The Queens properties consist of 703 residential units and approximately 570,000 gross square feet. The Bassuk family has owned and managed all 943 apartments (841,139 square feet) for many decades. The transaction occurred at a capitalization rate of approximately 1 percent. The properties were purchased by a joint venture of Bronstein Properties LLC and JP Morgan Asset Management. Massey Knakal Realty Services was the sole broker in this transaction st Street th Street Massey Knakal Realty Services - Neighborhood Expertise...Citywide And Beyond. Newsletter Circulation

2 MASSEY KNAKAL NEWS - MANHATTAN 2 Dear Friends, It appears that 2007 will remain another extremely strong and steady year in the NYC Metropolitan area. This is surprising given the relatively poor health of the national housing market. The investment sales market has hit unprecedented levels, both in terms of price and volume as capital is pouring in from every conceivable domestic and international source. Presently the hotel and office building sectors here are absolutely on fire. Average room rates are higher than they have ever been and occupancy rates are hovering at cyclical highs. Office rents continue to climb as Class A space in Manhattan is averaging $72 per square foot and vacancy rates market wide are at 6.1%, well below equilibrium. The multi-family market is as solid as a rock as cap rates continue to drop and gross rent multiples continue to climb. An even bigger surprise is the health of the development site market. In 4Q06, activity on development sites had slowed based upon the perception that the consumer condominium market had surpassed its peak. All the negative media attention about this had no substance and influenced the psychology of the market. This, coupled with the fact that there was actual contraction in the national housing market, led to inertia in the development sector. Not surprising given the national landscape. According to a study by the appraisal firm Miller Cicero, the average price per square foot in 1Q07 had increased 7.2% over 4Q06. The volume of sales had increased significantly as well. In 1Q07, 3,474 units were sold versus 2,441 in 4Q06 - a 42.3% increase. The much talked about over-supply of inventory was not evident in market statistics. These tangibly positive apartment results in 1Q07 have led to an extremely healthy development site market. Why? Extremely low unemployment, significantly rising income levels, rising corporate profits and the global economy experiencing the best business expansion it has in 30 years. As economies grow, much of the generated capital world wide is funneling into U.S. investments and particularly New York real estate. For these reasons our property sales market continues to roll and we anticipate continued strength for the balance of the year and well into Sincerely, MESSAGE FROM THE CHAIRMAN Robert A. Knakal IN THIS ISSUE... Sales Pages 2-8, South Bronx Resurrection Page 9 Territory System Page 10 Market Statistics Pages Charitable Foundation Update Pages Portfolio Sales Page 23 Office Contact Info Page 24 LOFT BUILDING An eight-story, mixed-use loft building at 145 Spring Street in Manhattan s SoHo neighborhood was sold by Massey Knakal Realty Services in an all-cash transaction valued at $13,250,000. The eightstory, 25 x 68, elevatored property is located on the north side of Spring Street between West Broadway and Wooster Street. It contains approximately 13,625 square feet. The basement and first floor were recently rented to a Portuguese jewelry boutique. The second through sixth floors are floor-through, two-bedroom lofts in excellent condition. The seventh and eighth floors are configured as a penthouse duplex with high ceilings, skylights and a private roof deck. The transaction occurred at a capitalization rate of 5.16% and a gross rent multiple of The property sold for $ per square foot. Massey Knakal Realty Services was the sole broker in this transaction (Manhattan, Northern Manhattan, Bronx, Westchester)

3 MASSEY KNAKAL NEWS - MANHATTAN 39 West 38th Street, 12th Fl. New York, NY Phone: (212) Fax: (212) Environmental Site Assessments Phase I, II & III) Soil & Groundwater Testing Brownfield Redevelopment Contaminated Soil Removal and Disposal Remediation Design Closure Plans Asbestos Consulting, Inspection Monitoring & Services Lead Paint Consulting Services Mold/Bacteria Consulting Services Indoor Air Quality Surveys Environmental Laboratory Services Historical and Regulatory Research Consulting on sites under NYC DEP E Designation Program ELEVATORED BUILDING A seven-story, elevatored building at 44 Trinity Place in Manhattan s Financial District was sold by Massey Knakal Realty Services in a transaction valued at $6,040,000. The 19-foot-wide building is block-thru from Trinity Place to Greenwich Street between Rector and Edgar Streets. It contains approximately 14,250 square feet including two commercial units on the ground floor (one vacant) and six residential units. The property lies in a C5-5 high bulk commercial district, which allows for approximately 29,520 buildable square feet, or approximately 15,270 square feet of air rights. Of the six residential apartments, one is rent stabilized and the rest are free market. The transaction occurred at a capitalization rate of 5.51% and a gross rent multiple of The property sold for $ per buildable square foot to a Manhattan developer. Massey Knakal Realty Services was the sole broker in this transaction. Massey Knakal Realty Services has sold a five-story apartment building with more than 13,000 square feet of air rights at 426 East 58th Street in Manhattan s Sutton Place neighborhood in a transaction valued at $3,075,000. The 20 x 68 building is located on the south side of East 58th Street between First Avenue and Sutton Place. It consists of 10 apartment units over five floors and contains approximately 6,800 square feet. Of the 10 units, four are rent stabilized, five are free market and one is rent controlled. There are substantial air rights (13,284 square feet) which may provide future upside. The transaction occurred at a capitalization rate of 4.34% and a gross rent multiple of The property sold for $ per square foot to a Manhattan investor. Massey Knakal Realty Services was the sole broker in this transaction. Massey Knakal Realty Services has sold a five-story walkup apartment building at 209 West 102nd Street on Manhattan s Upper West Side near Columbia University in an all-cash transaction valued at $5,375,000. The 32.6 x 85 property is located on the north side of West 102nd Street between Broadway and Amsterdam Avenue. It contains approximately 11,900 square feet including 22 apartments, of which 12 are free market, six are rent stabilized, three are rent controlled and one is occupied by the super. The building is comprised of 20 two-bedroom units and two one-bedroom units. The building and some of the units have recently undergone major renovation. The transaction occurred at a capitalization rate of 6.25% and a gross rent multiple of The property sold for $ per square foot. Massey Knakal Realty Services was the sole broker in this transaction (Manhattan, Northern Manhattan, Bronx, Westchester) 3

4 MASSEY KNAKAL NEWS - MANHATTAN COMMERCIAL BUILDING BY MASSEY KNAKAL A 25-foot-wide, two-story commercial building at 403 Greenwich Street in Manhattan s TriBeCa neighborhood was sold by Massey Knakal Realty Services in an all-cash transaction valued at $6,100,000. The property is located on the east side of Greenwich Street between Hubert and Beach Streets, within the TriBeCa West Historic District and TriBeCa Mixed-Use District. It runs approximately 100 feet deep on the lot with approximately 12,220 buildable square feet. TriBeCa Printing and Office Supply occupied the ground level store and the upper floor is used as an office. The building was delivered vacant. It sold for $500 per buildable square foot to an overseas investment group. Massey Knakal Realty Services represented the seller in this transaction. Massey Knakal Realty Services has sold a five-story apartment building at West 74th Street on Manhattan s Upper West Side in an allcash transaction valued at $5,700,000. The 39.5-footwide property is located on West 74th Street between Columbus Avenue and Central Park West. The 20- unit walk-up contains two studios and 18 one-bedroom units. All but one were rent stabilized with an average monthly rent of $1,452. The property contains approximately 12,500 square feet. The transaction occurred at a capitalization rate of 3.67% and a gross rent multiple of The property sold for $456 per square foot to a Manhattan investor who owns other properties in the neighborhood. Massey Knakal Realty Services was the sole broker in this transaction. $11,250,000 ACQUISITION LOAN 85 th Street & Lexington Ave. New York, New York Five retail condominium units located within a 15-story, 91,000 square foot residential condominium building Matthew Classi, Managing Member, arranged the financing for this transaction 60 Cutter Miller Road, St. 402 Great Neck, NY MIXED-USE BUILDING Massey Knakal Realty Services has sold a mixed-use walkup building at 1368 York Avenue on Manhattan s Upper East Side in a transaction valued at $7,500,000. The 26 x 98 property is located on the southeast corner of York Avenue and East 73rd Street. The five-story building contains 19 residential units and one ground floor retail store over approximately 11,000 square feet. Of the 19 apartments, 16 are rent stabilized and three are free market. The retail store s current rent is $12,800 per month with a lease expiring in The building is zoned R10 with a floor-to-area ratio of 10.0, allowing for approximately 14,480 square feet of air rights. The transaction occurred at a capitalization rate of 4.89% and a gross rent multiple of The property sold for $ per square foot to a Manhattan investor. Massey Knakal Realty Services was the sole broker in this transaction (Manhattan, Northern Manhattan, Bronx, Westchester)

5 MASSEY KNAKAL NEWS - QUEENS DEVELOPMENT SITE Massey Knakal Realty Services has sold a development site at Junction Boulevard in the Jackson Heights section of Queens in an all-cash transaction valued at $1,950,000. The 70 x 100 irregular lot is located on the northeast corner of Junction Boulevard and 34th Avenue in an R6A zoning district. The property contains approximately 19,104 buildable square feet. It sold for $ per buildable square foot to a Queens developer. Massey Knakal Realty Services was the sole broker in this transaction. Massey Knakal Realty Services has sold a 19-unit walk-up apartment building at nd Avenue in the Jackson Heights section of Queens in an all-cash transaction valued at $1,780,000. The four-story, 45 x 90 property is located on the north side of 32nd Avenue between 89th and 90th Streets. It contains 14 one-bedroom apartments. There are also five twobedroom apartments. The transaction occurred at a capitalization rate of 6.32% and a gross rent multiple of The property contains approximately 16,200 square feet and sold for $ per square foot to a Queens investor. Massey Knakal Realty Services was the sole broker in this transaction. RETAIL PROPERTY Massey Knakal Realty Services has sold a two-story retail property at Steinway Street in the Astoria section of Queens in an all-cash transaction valued at $1,460,000. The 19- foot-wide property is located on the west side of Steinway Street between 30th and 31st Avenues. The ground floor is currently leased to Venzini Clothing through May 11, The entire building contains approximately 2,484 square feet. The transaction occurred at a capitalization rate of 6.38%. The property sold for $ per square foot to a Queens investor. Massey Knakal Realty Services was the sole broker in this transaction. PROFESSIONAL BUILDING A corner professional building at Woodhaven Boulevard in the Rego Park section of Queens was sold by Massey Knakal Realty Services in an all-cash transaction valued at $1,750,000. The 60 x 60 building is located at the corner of Woodhaven Boulevard and 65th Drive, in close proximity to major transportation hubs including the Long Island Expressway. It occupies approximately 3,600 square feet including a loading dock, 12 parking spaces and 500+ square feet of enclosed storage space on the parking lot. Additionally, the property has approximately 4,800 square feet of air rights. The office space has been remodeled and was delivered vacant at closing. The property sold for $ per square foot to a Queens investor. Massey Knakal Realty Services was the sole broker in this transaction (Queens, Nassau County) 5

6 MASSEY KNAKAL NEWS - QUEENS A 204-foot-wide elevatored apartment building owned by Wyckoff Hospital at rd Street in the Jamaica section of Queens was sold by Massey Knakal Realty Services in an all-cash transaction valued at $10,000,000. The six-story building is located at the northeast corner of 88th Avenue between 153rd Street and Parsons Boulevard. It contains approximately 99,144 square feet over 96 residential apartments plus two super units in the basement. Of the 96 apartments, 30 are studios, 30 are one-bedrooms, 18 are junior four-units and 18 are two-bedroom units. Approximately 66 of the apartments are being used as offices and must be restored to class A apartments. The building features two elevators, indoor parking for 30 cars and was delivered vacant. It sold for $ per square foot to a Queens investor. Massey Knakal Realty Services was the sole broker in this transaction. MIXED-USE BUILDING Massey Knakal Realty Services has sold a three-story, mixed-use building at Metropolitan Avenue in the Kew Gardens section of Queens in a transaction valued at $906,500. The 20 x 94 building is located on the northeast corner of Metropolitan Avenue and 124th Place. The property has three offices on the first floor and four twobedrooms apartments on the second and third floors. The property contains approximately 5,832 square feet. The transaction occurred at a capitalization rate of 5.90% and a gross rent multiple of The property sold for $ per square foot to an investor from Long Island. Massey Knakal Realty Services was the sole broker in this transaction. A 20-foot-wide apartment building at Roosevelt Avenue in the Woodside section of Queens was sold by Massey Knakal Realty Services in an all-cash transaction valued at $1,300,000. The four-story property is located on the south side of Roosevelt Avenue between 52nd and 53rd Streets. It contains five onebedroom apartments, one three-bedroom apartment and a studio. Delivered vacant, it contains approximately 5,200 square feet. Additionally, it has a 15-year tax abatement. The property sold for $250 per square foot to a 1031 buyer from Queens. Massey Knakal Realty Services was the sole broker in this transaction. A four-story, walk-up apartment building at th Street in the Jamaica section of Queens was sold by Massey Knakal Realty Services in an all-cash transaction valued at $2,020,000. The 50 x 90 brick property is located at the northwest corner of 138th Street and 90th Avenue. It contains 24 one-bedroom apartments, 23 of which are rent stablized and one rent controlled. The average monthly rent is approximately $904 per month, or 85% of the current market value. The transaction occurred at a capitalization rate of 7.10% and a gross rent multiple of The property contains approximately 18,000 square feet and sold for $ per square foot to a Queens investor. Massey Knakal Realty Services was the sole broker in this transaction (Queens, Nassau County)

7 MASSEY KNAKAL NEWS - N. MANHATTAN/BRONX TOWNHOUSE A 19-foot-wide, four-story townhouse at 2107 Fifth Avenue in Harlem was sold by Massey Knakal Realty Services in an all-cash transaction valued at $1,090,000. The unrenovated property is located on the east side of Fifth Avenue between 129th and 130th Streets. The building is surrounded by some of Central Harlem s most reputable landmarks including Astor Row, Sylvia s eatery and Mount Morris Park. The property contains approximately 3,496 square feet. The townhouse is in need of complete renovation. The property sold for $ per square foot to an upstate New York user. Massey Knakal Realty Services represented the seller in this transaction. Business Banking Made Easy. $5,250,000 $5,050,000 $3,500,000 $3,200,000 First Mortgage East 78th Street New York, NY Multi-family Acquisition Financing $2,775,000 $2,600,000 $1,300,000 $800,000 First Mortgage West 10th Street New York, NY Multi-family Acquisition/Renovation First Mortgage Greenwich Street New York, NY Luxury Townhouse Acquisition/Renovation First Mortgage East 86th Street New York, NY Multi-family Acquisition/Renovation First Mortgage Union Street Brooklyn, NY Multi-family Acquisition/Condo Conversion First Mortgage DeGraw Street Brooklyn, NY Commercial Acquisition Financing First Mortgage Borden Avenue Long Island City, NY Commercial Cash-out Refinance First Mortgage Frost Street Brooklyn, NY Multi-family Acquisition/Renovation Customized Lending Fast Closing Competitive Rate Broker Protected $125,000,000: Annual Volume in 2006 Joe Murphy, Jr. Executive Vice President P: / F: Jmurphy@countrybnk.com Curt Farrell Managing Director P: / F: cfarrell@countrybnk.com Equal Opportunity Lender Member NYCE, PLUS 200East42ndStreet 9th Floor New York, NY S Two contiguous five-story apartment buildings at West 131st Street in Central Harlem were sold by Massey Knakal Realty Services in an all-cash transaction valued at $6,600,000. The 100 x 81 property is located on the north side of 131st Street between Lenox and Fifth Avenues. The walk-up buildings contain approximately 33,560 square feet and combined, contain 40 residential units 20 onebedrooms and 20 twobedrooms. It also contains 1,156 square feet of air rights. Nine of the units were delivered vacant. All 40 are rent stabilized. The transaction occurred at a capitalization rate of 6.35% and a gross rent multiple of The property sold for $ per square foot to private investor from Manhattan. Massey Knakal Realty Services was the sole broker in this transaction. A five-story walk-up apartment building at 1955 Sedgwick Avenue in the Bronx across from Bronx Community College was sold by Massey Knakal Realty Services in an all-cash transaction valued at $2,900,000. The 164 x 86 brick building has been owned by the same family the last 40 years. It contains 36 residential units, some as large as five rooms. Features include a new gas boiler, steel and marble staircases, a roof in excellent condition and a dozen digital cameras in addition to on-site staff. The property contains approximately 40,670 square feet. The transaction occurred at a capitalization rate of 6.95% and a gross rent multiple of The property sold for $71.31 per square foot to an investor from Long Island. Massey Knakal Realty Services was the sole broker in this transaction (Manhattan, Northern Manhattan, Bronx, Westchester) 7

8 MASSEY KNAKAL NEWS - N. MANHATTAN/BRONX You want to sell...we want to buy... STOCK OF CORPORATIONS THAT OWN U.S. REAL ESTATE PCG E xchange REALIZE INVESTMENT VALUE A 27-unit apartment building at 1405 Rowland Street in the north Bronx was sold by Massey Knakal Realty Services in an all-cash transaction valued at $1,900,000. The 60 x 94 property is located near all major transportation including the 6 subway line. It features replacement windows, new mailboxes, a renovated lobby, intercom system, circuit breakers throughout and a new roof. The super s apartment is a large two-bedroom recently gut renovated. The property contains approximately 22,560 square feet. The transaction occurred at a capitalization rate of 6.61% and a gross rent multiple of The property sold for $84.22 per square foot to a Long Island investor. Massey Knakal Realty Services was the sole broker in this transaction. VACANT WAREHOUSE Massey Knakal Realty Services sold a vacant warehouse in the West Farms neighborhood in the Bronx at Boone Avenue in an all-cash transaction valued at $1,165,000. The 100 x 100 industrial building is located on the west side of Boone Avenue between East 174th and East 173rd Streets. Several highways are located within a short distance of the property, including the Sheridan Expressway, Bruckner Boulevard and the Cross Bronx Expressway. It is zoned M1-1 with an approximate footprint of 10,000 square feet. The property sold for $ per square foot to a user from Manhattan. Massey Knakal Realty Services was the sole broker in this transaction. DEVELOPMENT SITE A 100 x 75 development site at Bryant Avenue in the Bronx was sold by Massey Knakal Realty Services in an all-cash transaction valued at $1,125,000. The lot is located on the east side of Bryant Avenue between East 173rd and East 174th Streets. The vacant site, which falls in an R7-1/C1-4 zone, covers an area of approximately 7,500 square feet. The total residential buildable square footage is approximately 25,800 square feet. The property sold for $43.60 per buildable square foot to a developer. Massey Knakal Realty Services was the sole broker in this transaction (Manhattan, Northern Manhattan, Bronx, Westchester)

9 MASSEY KNAKAL NEIGHBORHOOD WATCH SOUTH BRONX RESURRECTION Once synonymous with urban blight, the South Bronx is enjoying its much deserved comeback. Early last year, real estate contributor for Good Morning America, Barbara Corcoran, placed the South Bronx second in the Five Hot Real Estate Markets. The Bronx is also New York City s second fastest growing borough behind Staten Island. Due to the unseemly urban decay of the 1970 s, the South Bronx suffered a population loss of 57%; the past decade, however, has shown a significant increase in residents. Many factories have been rezoned (thanks to Mayor Bloomberg, Borough President Adolfo Carrion, Jr. and the City Planning Commission) to allow for residential units, and numerous amounts of two- and three-family homes are being erected in neighborhoods like Morrisania and Highbridge. Many long time South Bronx residents fear the new developments will increase rents and drive them out (as was the case in Brooklyn and Lower Manhattan) understandable, but illegitimate. The three- and four-family homes being developed are by private builders from Queens, Long Island, Brooklyn and the Bronx. Most of these newly built homes are sold to Bronx residents who see value in owning a home and also receiving rental income from the units they don t occupy. The larger apartment buildings being developed in the South Bronx are done so with the help of government financing. Dunn Development Corp. builds affordable and supportive housing and is actively building in the South Bronx. The firm currently has three new apartment buildings under construction totaling 158 units, in addition to the 120 units in two new buildings completed in recent years. Their buildings are geared toward low-income working families and people with special needs, many of them homeless. The company s principal, Martin Dunn, utilizes various financing sources including federal, state and city programs, equity generated by low-income tax credits and commercial banks. He is not only changing the landscape of the South Bronx, but also providing an unbelievable service to the people in the community. The firm has also incorporated green building into projects; a 54-unit building at 1212 University Avenue in the Highbridge section was the first mid- or high-rise apartment building in the United States to earn the federal government s Energy Star label. We have a very positive view of the South Bronx, Mr. Dunn said. We are excited to be contributing to the revitalization of this great borough and plan to continue investing in its many neighborhoods. Peter Bourbeau is building a 32- unit middle income apartment building on the corner of East 165th Street.and Reverend James A. Polite Avenue in the Morrisania section of the South Bronx. With the help of government financing it is possible to build a middle income rental building in a neighborhood that was once known for drugs and guns. If you walk one block north of Mr. Bourbeau s development, you will see seven new twoand three-family homes built by private developers. The $500 million, one-million square foot Gateway Center by Related Properties at the Bronx Terminal Market will redevelop a portion of the current Bronx Terminal Market site along with the Bronx House of Detention. It will provide known retail stores (Target, BJ s, Home Depot, Best Buy and Bed Bath & Beyond are a few of the proposed tenants) with an attractive, environmentallyfriendly design that will beautify the area, restore public access to the Harlem River waterfront and replenish the neighborhood with clean, well-lit sidewalks. This powerful magnet will encourage other businesses to invest in the Bronx. The Gateway Center will be situated in the heart of an area the Bloomberg Administration is committed to revitalizing with new jobs and new amenities. To the east of the project, Related is building The Hub Retail and Office Center, a $56.7 million mixed-use complex that will create about 230 construction jobs and 224 new permanent jobs. And to the north, a new Yankee Stadium will bring with it nearly 1,000 construction jobs, a new waterfront park and esplanade along the Harlem River, in addition to significant streetscape, traffic and infrastructure improvements. Also, the Bloomberg Administration has worked closely with community leaders to create the Hunts Point Vision Plan, a comprehensive initiative designed to promote a sustainable and working community. In addition to committing more than $27 million in capital funds to carry out the initial goals, the city has already invested $110 million at the new Fulton Fish Market at Hunts Point and the Hunts Point Produce Market. In 2004, the South Bronx vacant lot market was not nearly as strong as it is today. Prices for small to mid-sized lots were selling for $15 to $20 per buildable foot. Currently, vacant lots are trading for over $30 per buildable foot with several sales exceeding $40. Land owners in the South Bronx have seen dramatic increases in prices the past few years. The massive amount of new construction in the South Bronx is a prime indicator of property owners bright futures. David Simone exclusively covers the Morrisania, Melrose, Mount Eden, Claremont, Concourse and Highbridge sections of the Bronx for Massey Knakal. He can be reached at , x (Manhattan, Northern Manhattan, Bronx, Westchester) 9

10 MASSEY KNAKAL S BUSINESS MODEL The Massey Knakal Territory System - How Does It Work? 10

11 MASSEY KNAKAL NEWS - BROOKLYN MIXED-USE BUILDING A three-story mixed-use building at th Avenue in Brooklyn s Sunset Park neighborhood was sold by Massey Knakal Realty Services in a transaction valued at $1,180,000. The 26 x 64 irregular property is located on 4th Avenue between 57th and 58th Streets, one block from Sunset Park s premiere commercial corridor and two blocks from the N and R subway trains at 59th Street. It contains four apartments and two stores over approximately 4,806 square feet. Of the two stores, one was delivered vacant. The transaction occurred at a capitalization rate of 5.91% and a gross rent multiple of The property sold for $ per square foot to a Brooklyn investor. Massey Knakal Realty Services was the sole broker in this transaction. VACANT CHURCH A vacant Polish national church at th Street in the Park Slope section of Brooklyn was sold by Massey Knakal Realty Services in an all-cash transaction valued at $3,850,000. The 94 x 88 property is located on the north side of 15th Street between 4th and 5th Avenues. Delivered vacant, the property was sold by the Polish National Catholic Church of the Holy Cross, which included a finished basement, adjacent rectory and parking lot. It contains approximately 22,532 buildable square feet. The property sold for $ per buildable square foot to a Queens investor. Massey Knakal Realty Services was the sole broker in this transaction. DEVELOPMENT SITE Massey Knakal Realty Services has sold a prime development site with approved plans at Avenue P in the Bensonhurst section of Brooklyn in a transaction valued at $5,050,000. The 80 x 100 property is located on the south side of Avenue P between West 6th and West 7th Streets. It contains approximately 32,000 buildable square feet. The property comes with approved plans for a community facility, 14 indoor parking spaces, outdoor recreation space and 14 large three-bedroom apartments with balconies and terraces. Construction on the project has already begun. The Foundation has been poured; water, sewer lines, elevator core and first floor decking installed; steel columns up to the second floor; and underground plumbing to the basement. The property sold for $ per buildable square foot to a Manhattan development group. Massey Knakal Realty Services was the sole broker in this transaction. DEVELOPMENT SITE A nearly 8,000 square foot development site at 805 Surf Avenue in Brooklyn s Coney Island was sold by Massey Knakal Realty Services in an all-cash transaction valued at $1,850,000. The property is located on Surf Avenue between West 8th and West 12th Streets, across the street from Astroland the target rezoning area of Coney Island. Its C7 zoning allows for approximately 15,517 buildable square feet. The property sold for $ per buildable square foot to a Brooklyn developer. Massey Knakal Realty Services was the sole broker in this transaction (Brooklyn, Staten Island) 15

12 MASSEY KNAKAL NEWS - BROOKLYN FORMER HOSPITAL Massey Knakal Realty Services sold the former Saint Mary s Hospital in Brooklyn s Crown Heights neighborhood in a transaction valued at $22,000,000. The 270,000 square foot, two-building complex is situated on a four acre site - one entire city block in an R6 zone. Consisting of a 220,000-squarefoot, seven-story main building and a 50,000-square-foot five-story annex, the Saint Mary s Hospital Complex was previously owned by the Saint Vincent s Medical Center. The property consists of approximately 394,000 buildable square feet of residential space. The transaction occurred at a capitalization rate of 10.44% and a gross rent multiple of The property sold for $53.84 per buildable square foot. Massey Knakal Realty Services represented the seller in this transaction. A 16-unit apartment building at 1614 East 12th Street on the border of Brooklyn s Homecrest/Midwood sections was sold by Massey Knakal Realty Services in an all-cash transaction valued at $1,575,000. The 40 x 88 property is a four-story walk-up building with 12 onebedroom and four two-bedroom apartments, some recently renovated. It contains approximately 14,080 square feet. The property is close to subway and bus lines. The transaction occurred at a capitalization rate of 5.52% and a gross rent multiple of The property sold for $ per square foot to a Brooklyn investor. Massey Knakal Realty Services was the sole broker in this transaction. MULTIPLE PROPERTIES IN BROOKLYN HEIGHTS A mixed-use building, vacant lot and multifamily building at 71, 73 and 75 Pineapple Street in the landmark district of Brooklyn Heights were sold by Massey Knakal Realty Services in an all-cash transaction valued at $7,400,000. Combined, the properties offer almost 80 feet of frontage on Pineapple Street. 71 and 75 Pineapple Street currently have 23 vacant apartments, one vacant retail space and 13 occupied rent stabilized apartments. In total, the two existing buildings contain approximately 17,800 square feet. All three properties contain approximately 24,415 buildable square feet. The site is near the subway and blocks from the entrance to the pedestrian path on the Brooklyn Bridge. The properties sold for $ per buildable square foot. All were purchased by a New Jersey developer. Massey Knakal Realty Services was the sole broker in this transaction (Brooklyn, Staten Island)

13 MASSEY KNAKAL NEWS - NASSAU/WESTCHESTER A 20-unit apartment building at 55 May Street in the New Rochelle section of Westchester County, N.Y. was sold by Massey Knakal Realty Services in an all-cash transaction valued at $1,980,000. The four-story property is located at the northwest corner of May Street and Sickles Place. It contains approximately 13,976 square feet including two two-bedroom apartments and 18 one-bedroom apartments. The whole property has been recently renovated including new windows, electrical, plumbing, heating and painting. The transaction occurred at a capitalization rate of 6.73% and a gross rent multiple of The property sold for $ per square foot to a Westchester investor. Massey Knakal Realty Services was the sole broker in this transaction. MIXED-USE BUILDING A two-story, mixed-use building at 100 Lincoln Boulevard in the Hempstead section of Long Island was sold by Massey Knakal Realty Services in an all-cash transaction valued at $400,000. The vacant property is located on a major thoroughfare, east of Clinton Street. The first level of the building is a set-up for retail use, while the upstairs has one- and two-bedroom apartments. The first level can also be split into two smaller stores. The building can possibly be used as storage or offices as per Business B zoning allowances. The property contains approximately 3,660 square feet and sold for $ per square foot to a Queens investor. Massey Knakal Realty Services is the sole broker in this transaction. OFFICE BUILDING A two-story commercial building at 404 North Terrace Avenue in Mount Vernon, Westchester County, N.Y. was sold by Massey Knakal Realty Services in an all-cash transaction valued at $518,000. The property is located on the south side of North Terrace Avenue on a 50 x 100 lot. The entire building consists of approximately 3,120 square feet and was fully occupied by an electronics store. It was delivered vacant on the first floor upon sale, and the seller will continue to occupy the second floor for $1,200 per month for a period of two years. The transaction occurred at a capitalization rate of 9.03%. The property sold for $ per square foot to a Westchester user. Massey Knakal Realty Services represented the seller in this transaction. MIXED-USE PROPERTY Massey Knakal Realty Services has sold a two-story, mixeduse property at 1188 Broadway in the Hewlett section of Nassau County, Long Island, in an all-cash transaction valued at $915,000. The 40 x 103 property is located on Broadway near Franklin Avenue, walking distance to the Long Island Railroad Hewlett station. The building contains two stores on the ground floor (one vacant) and six two-bedroom apartments over approximately 5,884 square feet. The transaction occurred at a capitalization rate of 6.78% and a gross rent multiple of The property sold for $ per square foot to a Queens investor. Massey Knakal Realty Services was the sole broker in this transaction (Queens, Nassau) 17

14 MASSEY KNAKAL NEWS - STATEN ISLAND MULTIFAMILY BUILDING A pre-war multifamily building at 131 Silver Lake Road on Staten Island was sold by Massey Knakal Realty Services in a transaction valued at $2,300,000. The 60 x 90 building is located one block from Silver Lake Park, which boasts a golf course, twin reservoirs and 209 acres. The building is a four-story, 25- unit property comprised of 18 onebedrooms, six twobedrooms and one three-bedroom with a below market average rent of $820 per month. It contains approximately 20,000 square feet. The transaction occurred at a capitalization rate of 7.15% and a gross rent multiple of The property sold for $115 per square foot to a Brooklyn investor. Massey Knakal Realty Services was the sole broker in this transaction. DEVELOPMENT SITE A sprawling development site at 2000 Richmond Terrace in the Richmond Terrace section of Staten Island was sold by Massey Knakal Realty Services in a transaction valued at $940,000. The vacant lot is located on the corner of Richmond Terrace and Park Avenue in an M3-1 zone. It contains approximately 46,779 square feet. The lot is the former Port Richmond location of the Sedutto Ice Cream Factory, which shut down 10 years ago. The property sold for $20.09 per square foot to a Staten Island investor. Massey Knakal Realty Services was the sole broker in this transaction. MASSEY KNAKAL NEWS - PARTNERS HONORED Massey Knakal Founding Partners Paul Massey and Robert Knakal were recognized as honorees at the 2007 Brooklyn Philharmonic Spring Gala at 6 p.m. May 8 at the Brooklyn Museum, 200 Eastern Parkway. The elegant Spring Gala is the largest fundraising event held by the Brooklyn Philharmonic each year. The black tie event included cocktails and a silent auction, followed by a musical performance, the awards ceremony and dinner. Both Mr. Massey and Mr. Knakal are heavily involved in philanthropic work, which is why they were honored. This is the first time in their 19-year history as business partners that they were honored as individuals by the same organization. Other honorees included David Arena, President of Grubb & Ellis of New York and Richard A. Kessler, Chief Operating Officer of Benenson Capital Partners, LLC. We were extremely honored to be recognized by the Brooklyn Philharmonic, Mr. Massey said. Its commitment to artistic excellence, coupled with its significant presence throughout the borough of Brooklyn as witnessed through its award winning educational and community programs, perfectly mirrors the spirit of Massey Knakal. The Brooklyn Philharmonic was founded in 1954 by conductor Siegfried Landau. Now in its 53rd season, it is one of the nation s groundbreaking music ensembles. The group continues to celebrate its vital presence in the cultural life of the New York metropolitan area, and is devoted to serving Brooklyn's cultural and educational communities. It presents more than 400 events a year for over 50,000 people annually. We were thrilled to participate in the signature event, said Massey Knakal Senior Partner Timothy King, who is also a board member with the Brooklyn Philharmonic. The illustrious company of our fellow honorees, combined with this cause to which we are deeply committed, made May 8th a very special occasion for Massey Knakal (Brooklyn, Staten Island)

15 MASSEY KNAKAL NEWS - NEW YORK CITY BLOCK-THRU BUILDING A five-story block-thru building at 25 Park Place in the TriBeCa section of Manhattan was sold by Massey Knakal Realty Services in an all-cash transaction valued at $10,000,000. The 38-foot-wide property is located on the north side of Park Place between Broadway and Church Streets, north of the World Trade Center site. Containing approximately 26,705 square feet, it is on the landmark s calendar to be designated a historic site. The second through fourth floors are vacant residential spaces and the basement, ground and fifth floors are commercial spaces. The transaction occurred at a capitalization rate of 5.09%. The property sold for $ per square foot. Massey Knakal Realty Services represented the seller in this transaction. DEVELOPMENT SITE A development site at 698 Tenth Avenue in Manhattan s Hell s Kitchen was sold by Massey Knakal Realty Services in a transaction valued at $2,950,000. The 26.9 x 72 property is located on the east side of Tenth Avenue between 48th and 49th Streets. There is presently a one-story vacant commercial building on the property with approximately 1,890 square feet. Zoned R-8 with a C1-5 overlay, the lot contains 9,265 buildable square feet of development rights, as of right. The property sold for $ per buildable square foot to a Manhattan developer. Massey Knakal Realty Services was the sole broker in this transaction. S Massey Knakal Realty Services has sold two fivestory walk-up apartment buildings at 147 Avenue A in Manhattan s East Village/Alphabet City area in a transaction valued at $3,400,000. The x 51 property is located on the west side of Avenue A between East 9th and 10th Streets. The front and rear building total approximately 10,507 square feet. The buildings are comprised of 13 residential units (eight one-bedrooms in the front building, five two-bedrooms in the rear) and two retail stores (both in front). Of the apartments, 10 are rent stabilized, two are rent controlled and one is free market and vacant. One store lease expires in 2008, the other in The transaction occurred at a capitalization rate of 3.91% and a gross rent multiple of The property sold for $ per square foot to a Manhattan investor. Massey Knakal Realty Services was the sole broker in this transaction (Brooklyn, Staten Island) ELEVATORED APARTMENT BUILDING Massey Knakal Realty Services has sold a six-story, elevatored apartment building at th Avenue in Brooklyn s Sunset Park neighborhood in a transaction valued at $6,080,000. The 120 x 84 property is located across the street from Sunset Park between 7th Avenue and 44th Street. It contains 12 two-bedroom units, 40 onebedroom units and two studios over approximately 54,770 square feet. Half the units have been renovated. The transaction occurred at a capitalization rate of 4.29% and a gross rent multiple of The property sold for $ per square foot to a Manhattan real estate firm. Massey Knakal Realty Services was the sole broker in this transaction. 19

16 MASSEY KNAKAL NEWS - NEW YORK CITY CHURCH A church with offices, meeting rooms, an auditorium and three vacant above floors at MacDougal Street in Manhattan Greenwich Village was sold by Massey Knakal Realty Services in an all-cash transaction valued at $5,200,000. The x 105 building is located on the west side of MacDougal Street between West 8th Street and Waverly Place, in close proximity to Washington Square Park. Originally converted from a manufacturing building and then renovated in the 1960s to accommodate use for the Tenth Church of Christ Scientist, the property contains approximately 24,688 square feet plus basement. The church uses the basement through third floors. The fourth floor houses mechanicals, and the fifth and sixth floors are vacant. The building sold for $ per square foot to a Manhattan developer with plans to convert the above vacant floors to residential condominiums. Massey Knakal Realty Services was the sole broker in this transaction. S Massey Knakal Realty Services has sold two five-story apartment buildings at West 22nd Street in Manhattan s Chelsea neighborhood in an all-cash transaction valued at $4,000,000. The 27 8 x 48 properties are located on the south side of West 22nd Street between Ninth and Tenth Avenues. They contain a total of 18 units and approximately 6,860 square feet. Eight of the units are rent stabilized and 10 are free market. This property was sold as part of an eight-building portfolio two years ago by Massey Knakal, and was recently resold with another building from the original portfolio at 442 West 22nd Street. The transaction occurred at a capitalization rate of 6.48% and a gross rent multiple of The property sold for $ per square foot to an investor from Brooklyn. Massey Knakal Realty Services was the sole broker in this transaction. CO-OP SPONSOR SHARES ON MANHATTAN S UPPER EAST SIDE The sponsor shares of three co-op buildings at 417, 419 and 519 East 87th Street on Manhattan s Upper East Side were sold by Massey Knakal Realty Services in a transaction valued at $8,500,000. The 25-foot-wide properties are located on East 87th Street between First and York Avenues and York and East End Avenues. Each are five-story walk-up buildings with 20 units. The sponsor shares account for 48 of the total 60 units. They are comprised of 42 free market units, three rent stabilized units and three rent controlled units. Combined, the properties total approximately 25,540 square feet. The transaction occurred at a capitalization rate of 4.77% and a gross rent multiple of The shares sold for $ per square foot to a Manhattan investor. Massey Knakal Realty Services was the sole broker in this transaction (Manhattan, Northern Manhattan, Bronx, Westchester)

17 MASSEY KNAKAL CHARITABLE FOUNDATION REPORT Massey Knakal Charitable Foundation Launches Winter Drive To kickoff the start of 2007, the Massey Knakal Charitable Foundation launched a Winter Drive that members titled, Out With the Old, In With the New. The intention was not to have Massey Knakal employees spend money but rather, provide an outlet to donate any old/used/unworn/unwanted clothing, accessories and/or appliances. The company s collaborative efforts benefited the Goodwill Industries of Greater New York, Inc. The Foundation reached out to the organization s Queens location as a conduit for Massey Knakal to make a difference in the local community and improve additional lives across the New York border. In addition to helping those in need, the organization runs a Job Placement Program. So the Foundation was also able to collect suits, slacks, blazers, sweaters, man-tailored shirts, work bags - everything a new professional would need. Not only did the donations provide much needed essentials, but they also created the potential to assist in granting someone a job, undoubtedly something that will change their lives forever. Once again, the Massey Knakal family was floored by the amount of time, energy and effort Massey Knakal employees put forth to ensure they contributed to this drive. The Winter Drive, like all those before, was a monumental success. Company-wide, more than 26 filled-to-thebrim boxes of all different sizes and 36 overflowing bags were collected. The generosity of the Massey Knakal employees impacted newborns, children, teens, men, and women everyone was included! Like every other drive, Massey Knakal is thrilled to have everyone s support. We are grateful to have so many participants in each of our offices who pull together and exhibit such great motivation in making a difference. Massey Knakal employees show off the boxes and boxes of clothing donated to the Goodwill Industries of Greater New York, Inc. Company-wide, the Foundation gathered more than 26 boxes and 36 bags of clothing and other items (Manhattan, Northern Manhattan, Bronx, Westchester) 21

18 MASSEY KNAKAL CHARITABLE FOUNDATION REPORT MKCF Appoints New President, Members The Massey Knakal Charitable Foundation was pleased to announce that Jonathan Hageman, lead assistant to Chairman and Founding Partner Robert Knakal, was named President of the Massey Knakal Charitable Foundation. He replaced outgoing President Peter Schubert, who stepped down to take a position as Trustee on the board of the Brooklyn Children s Museum. Mr. Hageman began his career at Massey Knakal in the fall of 2002 as an Administrative Office Manager, assisting the vice president and Chief Executive Officer with day-to-day operations. He was promoted a year later to Senior Associate, and now works side-by-side with Mr. Knakal as head member of his team. Mr. Hageman joined the seven-member Charitable Foundation board last year and served as its secretary until taking over the presidency. The announcement was made formally at Massey Knakal s Awards Ceremony in January. It has been a great privilege to be a part of the initial board over the past two years. I am truly honored to be named President, Mr. Hageman said. Peter did an incredible job as he was largely responsible for our initial vision and our accomplishments thus far. I am looking forward to continuing in his footsteps and expanding upon the Foundation s success. Originally from Buffalo, N.Y., Mr. Hageman graduated from the University at Albany with a Bachelor s degree in Business Administration. Congratulations also to new board members Annie Herrick, Manager, Organizational Effectiveness, and Ofer Cohen, Director of Sales in Brooklyn. Ms. Herrick, a Wake Forest University graduate with a Bachelor s degree in Political Science, is the new Secretary, filling the spot Mr. Hageman vacated. Mr. Cohen, a State University of New York Empire State College graduate with a Bachelor s degree in Business, Management and Economics, has replaced outgoing Foundation member Tori Roberson as Grants Manager. We wish all three success in their new roles alongside Treasurer Michael Wlody, Vice President Gia LaMarca, Public Relations Manager Christoffer Brodhead and Vice President of Volunteer Drives Robert Shapiro. Foundation Awards Grant To Non-Profit Organization The Massey Knakal Charitable Foundation recently awarded grants to the following non-profit organizations: Thorpe Family Residence, Inc. The grant awarded will help support a social worker position at the Thorpe Family Residence, Inc., which has provided shelter and services to homeless families in the Bronx. This organization provides housing to mothers and their children as well as an array of support services to assist the mothers in securing employment and housing and handling the stress of parenting and running a home. Its clients are homeless families who need long-term support to stabilize themselves after the traumas of incarceration, mental illness, substance abuse, domestic abuse or a combination of these factors. Massey Knakal Employees Donate Earnings Last year, the Massey Knakal Charitable Foundation launched its first company fundraiser, the 1% Club, asking all company employees to contribute 1% of their gross earnings for the year. Now an annual event, the Foundation kicked off its 1% Club campaign for 2007 and surpassed their goal, achieving 50 members for The Foundation truly appreciates everyone taking the time to consider the donation this year and we sincerely thank the 2007 members for their support, said new Foundation President Jonathan Hageman. As always, we look forward to directing the funds to worthy charitable organizations in accordance with our mission, and will continue to keep you aware of our efforts. Since its inception, the Foundation has been able to directly fund support for more than 70 different charitable causes in the New York metropolitan region. The Massey Knakal Charitable Foundation is dedicated to the support of local educational, family and other community-oriented charitable causes primarily within New York City and the Tri-State area. In addition to providing these charities with direct grants, the Foundation will organize volunteer efforts to benefit them with its time and energy. If you would like to make a tax-deductible donation to the Foundation, or if you represent a charity whose objectives fit with the Foundation s stated mission, please contact Jonathan Hageman, President of the Foundation, at , x (Queens, Nassau County)

19 MASSEY KNAKAL PORTFOLIO SALES THE UNIONPORT BRONX PORTFOLIO BY MASSEY KNAKAL Massey Knakal Realty Services has sold four multifamily buildings in the Allentown section of the Bronx in an all-cash transaction valued at $23,750,000. The Unionport Bronx Portfolio consists of 1944 Unionport Road, 1954 Unionport Road, 1980 Unionport Road and 733 Arnow Avenue. The first three are contiguous, six-story apartment buildings that overlook Bronx Park. The Arnow Avenue property is a five-story walk-up apartment building just north of the others, four blocks east of Bronx Park. The properties house a total of 332 residential apartments plus three super s units, two commercial units and one cellular phone antennae. Of the apartments, 98% are rent stabilized and 2% are rent controlled. Ten are currently vacant. Combined, the properties consist of 256,000 square feet. The transaction occurred at a capitalization rate of 6.09% and a gross rent multiple of The property sold for $92.77 per square foot to a Brooklyn investor. Massey Knakal Realty Services was the sole broker in this transaction. WEST 115TH STREET PORTFOLIO IN CENTRAL HARLEM Massey Knakal Realty Services has sold seven non-contiguous walk-up buildings in the Central Harlem area in an all-cash transaction valued at $8,500,000. The West 115th Street Portfolio properties are located on the north side of West 115th Street between Adam Clayton Powell and Frederick Douglass Blvds.. They include: 213, 221, 229, 233, 241, 243 and 283 West 115th Street. The properties span approximately 70,174 square feet and are comprised of 71 residential units and two commercial units. The transaction occurred at a capitalization rate of 4.72% and a gross rent multiple of The property sold for $ per square foot. Massey Knakal Realty Services represented the seller in this transaction (Brooklyn. Staten Island) 23

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